How to Buy Property When You Are Young


Owning property when you are in your 20s can be a challenge. However, it also has many advantages.

Probably the biggest challenge is having enough money for the down payment. The advantage, however, is that you have a longer time to pay off the loan and you have more flexibility, as you have less responsibilities. Imagine juggling priorities like sending children to school, saving for holidays as well as trying to buy a home.

Here are a few strategies to consider if you are looking to buy property in your 20s or 30s.

Buy rental property

Anto, 28, decided to buy a house in Cibubur area four years ago, for around Rp 350 million.

With a salary of Rp 5 million monthly, he did not want to be burdened with mortgage so he decided to rent out his Cibubur property. “The rental of Rp 2 million per month is enough to pay the installments,” Anto says.

To date, he already paid off 40% of the loan.

Once you have paid off the loan or are earning enough that the mortgage becomes affordable, then you can choose to stay in the property.

Buy jointly

Hendro, 33, bought a two bedroom apartment in Surabaya that costs Rp 600 million with his older brother. 

“We shared the down payment and installment,” says Hendro.

He plans to resell the apartment when the price increases. “Once we make some profit, we will sell it,” says Hendro.

Although the apartment is registered under his brother’s name, Hendro says he is not worried about his portion when they sell the apartment.

“It’s all based on trust,” says Hendro.

You can also buy property under joint names – just make sure you consult it first with a notary and the developer of the property.

Saving for your down payment

Pipit, 25, just bought a house around Mampang Residence last February for Rp 500 million. Pipit has been saving to pay for the down payment over the three years that she has been working.

“Although my income is enough, I prefer to pay for the down payment.” She now already lives in that house. She says she spares 30% of her salary every month. “I prefer to live with my parents in Bekasi to save money so I don’t have to rent,” says Pipit.

Now she pays the down payment in installment. “I got a promo for flat interest, so when the BI rate increases, my interest payments will remain the same,” says Pipit. On average, she pays around Rp 4 million a month. “After I finish paying the down payment, my installment will be easier,” says Pipit.

It is not impossible to have a house in your 20s. The most important thing is knowing how to. Would you like to try?

Read also: 5 Questions to Ask Property Agent When Buying an Apartment

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